Real Estate, Mortgage News

Real Estate News and Press Release Distribution Services
Submit Press Release | Submit RSS Feed | About US | Contact Us

Home | Real Estate News | Mortgage Rates
Unlimited Press Release Distribution
Press release distribution service

News Media
CNN Money
Costar Group
Inman News

Los Angeles Times

National Real Estate Investor
Mortgage News Daily
New York Times
Realtor Magazine
Wall Street Journal
Yahoo Finance
RSS News Feed
Get your news feed listed here as other news media shown below! Submit RSS News Feed

Mercury News
New York Post

Real Estate News Releases

FBI Fights Mortgage Fraud As Foreclosures Abound

(EMAILWIRE.COM, March 10, 2007 ) SACRAMENTO, CALIF – Mortgages these days, especially those in the so-called ‘subprime’ market, are a hot topic of conversation in the news and also at the Federal Bureau of Investigation (FBI). During the past three years the FBI has practically doubled the number of mortgage fraud cases under investigation.According to the Bureau in its report on financial crimes issued on Wednesday of this week the problem is “pervasive and growing.” The number of fraud cases increased to 818 in 2006 from 436 in 2003.The two most common types of mortgage related fraud the FBI investigates are known as ‘fraud for profit’ and ‘fraud for housing.’ The first category of fraud for profit is related to criminals who operate inside of the industry. One example is people who issue false appraisals in exchange for kickbacks from loan officers who have profited by selling more expensive loans. Other types of insider activities fall under this category of crime as well.Another area, so-called ‘fraud for housing,’ is exemplified by borrowers who lie on mortgage applications or otherwise acquire properties by using false information. Industry watchers and foreclosure experts such as Patrick McGilvray, J.D., President of Sacramento-based have noticed that many people who lied in the past about their incomes on ‘stated income’ loans are now feeling the heat.Mr. McGilvray observed, “many first-time homebuyers, in order to get into the Sacramento residential real estate market between 2002 and 2005 overstated their incomes significantly. This trend happened throughout the country as well, and the negative effects are being most felt in states such as California that have seen declines in property values.”McGilvray also noted that many of these problems are precipitated by higher payments facing homeowners who purchased homes using Adjustable Rate Mortgages (ARMs) that have a low introductory payment that spikes after a period of time to a fully amortized and significantly higher payment.It is easy to feel sympathetic for first-time homebuyers who may have bitten off more than they could chew in terms of buying a home, but there are other homebuyers who elicit less sympathy. In this category are some real estate investors known as ‘flippers.’Some of these individuals used various misleading strategies to purchase many homes in the hopes that their investments in these homes would quickly go up in value and allow them to be sold for a large profit. With a slowdown in prices many found that they could not sell the properties for what they owed and allowed the properties to be foreclosed on.One of the most challenging things about prosecuting fraud, according to legal experts, is that an intent to defraud someone must be proven, as opposed to merely making a poor business decision. Another challenge is that the lending industry is not required to report suspected cases of fraud perpetrated against them.A third situation that makes it difficult to get a true picture of mortgage related fraud is that many lenders sell their mortgages on the secondary mortgage to a new purchaser such as a bond issuer. When problems arise with these types of repackaged loans they are often not related back to the original wrongdoer.The Bureau has recently publicized its efforts to address mortgage related fraud because of concerns that problems in the housing sector might spill over to the rest of the economy. This comes on the heels of federal regulators announced plans to create more oversight of bank lending practices, especially concerning loans that require little or no documentation from a borrower to prove creditworthiness.Contact:Patrick McGilvray, J.D.Tel: 916-920-3278 press release was issued through GroupWeb EmailWire.Com. For more information on press release distribution, go to

Patrick McGilvray, J.D.
Patrick McGilvray, J.D.

Real Estate News by Sector
  • Appraiser
  • Consumer News
  • Commercial
  • Mortgage News
  • Property Law
  • REIT News
  • Sales, Marketing
  • Technology

  • Real Estate RSS Marketpalce

    Submit RSS news feed on Real Estate.
    Have your feed on real estate news, products or services displayed under this marketpalce and have your feed on a full page updated daily. Click on example below. Add RSS feed Now!

    EmailWire Real Estate News Releases
    News releases on real estate as posted by businesses, organizations and experts.

    Press release service

    ESTATENewswire is part of GropWeb Network, online properties of GroupWeb Media LLC. Copyright © GroupWeb Media LLC. All Rights Reserved.

    For unlimited press release distribution for $99 per month or $999 per year, call (281) 645-4086 or start posting your press releases online at
    Copyright 2009 GroupWeb Media LLC

    GroupWeb Media Network
    AfricaNewswire.Net | AppleNews247.Com | AsiaNewsWire.Net | Aviation-NewsWire | Energy Industry | EstateNewsWire | | Food Beverage News | Glamour NewsWire | Health NewsWire | Hosting NewsWire | i-Auto NewsWire | i-Business News | EuropeNewsWire.Net | | i-Canada-News.Com | | iT-NewsWire.Com
    | InvestorsNewsDesk.Com | i-TravelNewsWire.Com | | | | MoneyNewsWire.Net | Movie-Stars-News.Com | PayDayNews247.Com | PharmaNewsWire.Com | Publishing-NewsWire.Com | | Telecom-NewsWire.Net | Transportation-News.Com | USGovernment-News.Com | WebPosters.Net | Wireless-NewsWire.Com |
    ESTATENewswire.Com - Newswire and Press Release service of GroupWeb Media LLC